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Piramal Group Subsidiary Announced Plans to Invest Rs 600 Crore in Annapurna Finance

Based in Odisha, Annapurna has an AUM of USD 1.25 billion as of 31 March 2024.

Piramal Group announced on Tuesday, 14 May, that its subsidiary Piramal Alternatives plans to invest Rs 600 crore in microfinance provider Annapurna Finance.

In accordance with a corporate statement, the investment entails providing non-core tier-II capital and purchasing secondary ownership from an existing shareholder.

No breakdown of the Rs 600 crore investment amount was provided, nor was the precise percentage purchased made public.

It states that the “structured capital solution” aims to quicken the growth of Annapurna’s managed assets in a risk-adjusted manner.

Based in Odisha, Annapurna has an AUM of USD 1.25 billion as of 31 March 2024. It has 1,372 branches throughout 20 states and lends money to small, medium-sized, and micro enterprises.

Kalpesh Kikani, the chief executive officer of Piramal Alternatives, said, “Microfinance as a retail asset class has grown at a CAGR (compound annual growth rate) of 32 per cent over the last decade and is expected to continue the high growth trajectory.”

The managing director and CEO of Annapurna Finance, Gobinda Chandra Pattanaik, said that the company’s diversification and position consolidation in significant markets will be aided by the expansion capital from Piramal.

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